This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein that has been prepared by the project sponsor, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision.

Country Bird Holdings Limited (CBH) is an agricultural group comprising (i) integrated poultry and stock feed operations in South Africa trading as Supreme Poultry and Nutri Feeds; (ii) poultry breeding, broiler and stock feed operations in the southern African region trading as Ross Africa and Master Farmer; and (iii) South African retail and distribution operations trading as Long Iron Meats, Supreme Distributors and Ama Chick Chick. CBH currently operates in Botswana, the DRC, Malawi, Mozambique, Namibia, South Africa, Zambia and Zimbabwe.

The Project entails: (i) increasing DOC production in Zambia & Botswana; (ii) expansion of the Zambia feedmill capacity; (iii) increase broiler meat processing capacity in South Africa; and (iv) construct soya bean deactivation plants at two of its feedmills.

Project Sponsor and Major Shareholders of Project Company

CBH was established in 2003 and listed on the Johannesburg Stock Exchange in 2007. Currently, the Company’s market capitalization is approximately US$90.1 million. The major shareholder is Synapp International Limited (“Synapp”), a family owned investment company led by Kevin James, an executive director with the Company. The family holds 81.9% shareholding. CBH currently has over 900 minority shareholders including institutional and individual shareholders.

Total Project Cost and Amount and Nature of IFC's Investment

The total project cost is estimated at US$42.4 million. The proposed IFC investment is a US$25m convertible loan for IFC’s own account.

IFC investment as approved by Board

25 million (USD)

Product Line

IFC Investment (million USD)

Risk Management

Guarantee

Loan

25

Equity

* These investment figures are indicative

Location of Project and Description of Site

CBH has existing operations in Lusaka, Zambia; Gaborone & Francistown in Botswana; and in the North West Province of South Africa. The proposed projects will be based on its owned facilities at these operations.

Expected Development Impact

The project's expected development impact includes: (i) higher efficiency, quality and best practise bio-security standards transfer by a leading regional poultry player in the region; (ii) SME development through increased outgrowers and distributor network; (iii) supply chain development through investments in agro allied businesses; (iv) creation of additional direct and indirect jobs; (v) improved food security in the investment countries; and (vi) increased tax revenues to Governments

IFC's Expected Role and Additionality

IFC additionality will encompass: (i) IFC's technical expertise, global knowledge of the industry and markets, as well as lessons learned from other integrated poultry projects are a valuable resource to the Company; (ii) IFC will further support the Company's long-term regional project scope with tailor-made financing mix of debt & equity; (iii) IFC will assist CBH with resource efficiency management program

Environmental & Social Categorization Rationale

This categorization is in accordance with other similar type of projects within the sector. The project is expected to have limited environmental and social impacts which are site-specific, temporary and none are regarded to be significant. Any impacts arising as a result of the project can be managed through CBH’s existing Environmental, Health and Safety (EHS) management systems. In addition, CBH’s management has committed to further develop and integrate its existing EHS management systems into an Integrated Environmental and Social Management System in compliance with IFC’s PS1 requirements and applicable WBG General and Sector-Specific (Poultry production and Poultry processing) EHS Guidelines for all its operations.